News

Indos Eircom story in inquiry

THE deputy business editor of the Irish Independent has been asked to co-operate with an Irish Stock Exchange inquiry into share price movements at Eircom.

The company’s share price rose in the days before and after reports in the Irish Independent that Eircom was the subject of a takeover bid from Swisscom, another telecoms company, which is 66% owned by the Swiss government.

On October 6 the newspaper published a front-page story by Tom McEnaney claiming that Swisscom had made a €3 billion approach. Shares in Eircom, which had been rising steadily, soared from €2.04 to €2.24 on the back of the takeover speculation.

Eircom issued a statement later that day stating it was “not currently in discussions” with Swisscom or any other company in relation to a possible offer.

On the following day the Irish Independent stated “investors interpreted Eircom’s use of the term ‘currently’ as confirmation that an